Diamond certificates, or certs, as they are known in the diamond industry, are often called the fifth C, in addition to the well-known 4Cs of diamond stones: carat weight, cut, color, and clarity.

This article will answer several popular questions about diamond certificates:

• Why is buying a certified diamond better than buying a stone without a cert?
• What are the most reputable certification systems in the United States and around the world, and how are they different from each other?
• Are there different types of certificates and what are the key differences?
• How can you be sure that a certificate corresponds to a specific diamond?
• What’s the difference between certification and appraisal?

Why is buying a certified diamond better than buying a stone without a cert?

A diamond certificate is the evaluation of a third-party, neither the diamond buyer nor seller. Unfortunately, an outsider’s certification is necessary, as it would be easy for an unscrupulous jeweler to take advantage of an uninformed buyer. There are a number of ways unsuspecting buyers might land a bad deal and never be the wiser.

If the diamond is not certified, there is a good chance you may be buying a stone that is one or more grades below stated values in terms of carat weight, color, clarity, or cut. Without a certificate, issued by a reputable agency, such as GIA, AGS, or HRD, a buyer relies on a jeweler’s integrity that the diamond’s 4C parameters are accurate and not overstated.

A lack of a certificate may be a clue that the diamond has been “enhanced” and the jeweler knows an inspection would reveal the diamond’s true status, as well as indicate how the compromised diamond might erode. Internal fractures, inclusions, and excessively yellowish color, can be treated to visually improve the appearance of the stone. Such treatment deteriorates the overall quality and value of the stone. For example, diamond fractures can be filled with molten glass (a process known as Yehuda, from the inventor’s name) to improve clarity by one or two grades. Or it can be worse: Instead of molten glass, some jewelers use cheaper materials containing bromine to fill the fractures, which inevitably make the diamond darker over time, due to ultraviolet exposure. Some diamonds can be laser-treated to visually eliminate some of the “inclusions.” Laser treatment involves drilling tiny holes in the diamond to get to the inclusions. Needless to say, diamonds with drilled holes are worth less than comparable grade diamonds that have no holes. Diamonds that are yellowish in color (color grades S through Z) can sometimes be pressure- and heat-treated to make them whiter (a process often referred to as HPHT, high-pressure and high-temperature). Such treatment also makes diamonds more fragile and brittle and, therefore, more prone to damage.

It is important to note that enhancement processes such as Yehuda, laser clarity enhancement, and HPHT can be useful for those who are looking to buy bigger diamonds for less money. If a diamond is inexpensive for its size due to yellowish color or if it contains a visible fracture, you can still buy such a diamond inexpensively (perhaps at a 30-50% discount compared to a naturally colorless or fractureless stone) and have it enhanced to improve its appearance. This enhancement would be significantly cheaper than buying a naturally higher grade diamond.

The problem, however, is that some jewelers make such enhancements and try to sell those diamonds without disclosing to buyers anything about the treatment.

To avoid buying a diamond “lemon” it is better to buy diamonds that are certified by reputable grading agencies.

What are the most reputable certification systems in the United States and around the world, and how are they different from each other?

Several well-known grading agencies in the United States and Europe have high reputations:

• Gemological Institute of America (GIA)
• American Gemological Society (AGS)
• International Confederation of Jewelry, Silverware, Diamonds, Pearls, and Stones (CIBJO)
• Diamond High Council (HRD, which is an abbreviation of the Dutch “Hoge Raad voor Diamant”)
• International Gemological Institute (IGI)
• European Gemological Laboratory (EGL)

GIA, based in the United States, is considered to be the industry standard and is the most widely used and trusted name in the diamond trade. AGS is well-known for its in-depth scientific research into diamond color grades. AGS’s color grading is considered to be somewhat superior to GIA’s by some jewelers. HRD, EGL, and especially CIBJO are not as well known in the United States as their American brethren, but certificate from any of these agencies is a solid guarantee that you are not going to end up with a diamond “lemon.”

The key differences between the grading agencies are their diamond color and clarity grading systems, which might be somewhat difficult to compare against each other due to differences in scale. Over the years, however, some agencies made an effort to standardize their grading scales with that of GIA. Hence, be careful with older certificates, as the grades may not match current ones. For example, AGS modified its grading system in 1995. On this note, however, it is not advisable to buy diamonds with certs that are more than three years old since diamonds, like everything else, are prone to wear and tear and over time can chip, scratch, or crack, and a certificate more than three years old is not going to reflect the accumulated everyday damage.
The table below shows side-by-side four of the world’s most popular color grading systems: GIA, AGS, CIBJO, and HRD.

Color Grade Description	GIA	AGS	CIBJO	HRD
Colorless	D	0	Exceptional white +	Exceptional white +
	E	0.5	Exceptional white	Exceptional white
	F	1.0	Rare white +	Rare white +
Near Colorless	G	1.5	Rare white	Rare white
	H	2.0	White	White
	I	2.5	Slightly tinted white (I)	Slightly tinted white
	J	3.0	Slightly tinted white (J)
Faint Yellow	K	3.5	Tinted white (K)	Tinted white
	L	4.0	Tinted white (L)
	M	4.5	Tinted color	Tinted color
Very Light Yellow	N	5.0
	O	5.5
	P	6.0
	Q	6.5
	R	7.0
Light Yellow	S	7.5
	T	8.0
	U	8.5
	V	9.0
	W	9.5
	X	10.0
	Y
	Z

Similar to color grading, clarity grading scales have also been gradually standardized across the different systems. GIA grading scale is increasingly used as an industry standard. Below are the clarity grading scales for the same four grading agencies as above: GIA, AGS, CIBJO, and HRD.

Color Grade Description	GIA	AGS	CIBJO	HRD
Flawless	FL	0	Loupe Clean	Loupe Clean
Internally Flawless	IF
Very-Very Slightly Included	VVS1	1	VVS1	VVS1
	VVS2	2	VVS2	VVS2
Very Slightly Included	VS1	3	VS1	VS1
	VS2	4	VS2	VS2
Slightly Included	S1	5	S1	S1
	S2	6	S2	S2
Imperfect (or Included)	I1	7, 8, 9, 10	Piqué I	P1
	I2		Piqué II	P2
	I3		Piqué III	P3

Are there different types of certificates and what are the key differences?

The short answer is yes, there are a few types of certificates issued by the grading agencies’ laboratories. All grading laboratories have different names for their certificates, which helps differentiate the brands in the diamond market. GIA calls its certificates either a GIA Diamond Dossier or a GIA Diamond Report. AGS calls its certificates Diamond Quality Documents, Diamond Quality Reports, or Diamond Quality Analyses. All these certs are different in that they provide varying level of detail about a diamond.
For instance a GIA Diamond Dossier comes in two types—with and without diamond cut details. All GIA Diamond Dossiers provide basic information on the diamonds’ 4Cs (carat weight, color, clarity, and two elements of the cut quality: polish and symmetry). Dossiers also specify the stone’s fluorescence and measurements. If the report comes with the “cut” information, it also provides detailed dimensions of the stone, such as table size, crown and pavilion angles, girdle thickness, etc.

GIA Diamond Reports, however, are slightly more detailed. They contain all the information included in the GIA Diamond Dossier plus a schematic of the stones’ inclusions (blemishes, inclusions, chips, feathers, etc.). This information may be useful for two reasons:

1. It allows the owner (and the jeweler) to link the diamond cert to the diamond itself by comparing internal inclusions in the diamond, seen under the 10x loupe with those specified in the GIA Diamond Report, without having to use a microscope to read the laser registry inscriptions, and
2. It indicates whether the diamond may need to be recertified when a 10x loupe examination indicates that some additional chips and scratches may have appeared on the stone that were not captured when the diamond certificate was created.
   Below are examples of a GIA Diamond Report and a GIA Diamond Certificate (pictures are courtesy of GIA).

How can you be sure that a certificate corresponds to a specific diamond?

Some diamonds are laser engraved with a serial number on the girdle, to match the serial number on the certificate. However, professional jewelry thieves know that a repolish of the girdle can eliminate the engraved number. And, of course, the same option is available to an unscrupulous jeweler.

A better method to compare certification with a stone is to ask for a third-party’s professional evaluation. No matter how similar two diamonds may be, they are likely to vary in weight, measurements, angles, and proportions. Some certificates do not carry this level of detail, which is one of the reasons diamond stones with certain certifications are a little more expensive than others with less detailed certs.

If your certification offers this information, seek out an independent appraiser, a GG (graduate gemologist). An appraiser who does not sell or buy diamonds has no vested interest in your purchase and is likely to give you the most honest and accurate appraisal.

If you cannot find an independent appraiser, go to a local jeweler and ask to make an appointment with an appraiser. Your odds of receiving a thorough, unhurried inspection improve with your method of approach—do not rush the jeweler, do not take the jeweler’s time away from potential other customers, expect to pay a fee, and be polite. If it improves your sense of accuracy, ask if you can have the evaluation without the GG viewing the certification. Then you at least know the GG did not simply copy what your cert says.

Many things can be manipulated, but each diamond’s inclusions are unique. A certification that plots the diamond’s inclusions is like checking the fingerprints on identical twins—you’ll find the one you want.

What’s the difference between certification and appraisal?

A diamond’s certification is a scientific review of the rock’s qualities: color, cut, clarity, carats. It pertains to a loose diamond but will accompany the diamond even after a setting has been added. Certifications are conducted by several reputable groups. Certification does not assign a monetary value to a stone; it assigns grades on the diamond’s key qualities.

An appraisal assigns a monetary value to a stone. Appraisals on loose stones are more accurate than appraisals on mounted diamonds, since flaws are less likely to be hidden. The appraisal of a diamond can vary, depending on who is conducting the appraisal, how, why, and when. An appraisal can be rendered useless by fluctuating market conditions, but a diamond’s certification is more steadfast. If a certified diamond has been mounted on a ring, it may need to be recertified to make sure normal everyday activity did not deteriorate the clarity of the stone by chipping or scratching the surface. Also, certain ring settings involve cutting into the stone or pounding on it, and recertification will provide an up-to-date evaluation.

For the most accurate appraisal, a third-party gemologist should be consulted. For a speculative guess at a particular diamond’s worth, plug its certification information into DiamondPriceGuru.com’s search function to see the prices online retailers charge for similar diamonds. This is a good proxy for the retail value of the diamond, but not for a jeweler’s buying price. Jewelers buy diamonds from the public at wholesale prices, which, according to industry sources, are typically 60% or less of the retail price. So, if on DiamondPriceGuru.com diamonds similar to your stone sell for about $5,000, it is likely a jeweler will offer you no more than $3,000 for it.

It can be challenging for a groom-to-be to pick a diamond shape without knowing for certain what his loved one prefers.

Of course you could draw some conclusions on what shape your future fiancée likes based on her other jewelry. If she prefers to wear traditional styles, a round or oval brilliant, solitaire setting could be the way to go. Round or oval is also a good choice if your loved one is into an active lifestyle or likes to wear dainty clothing, since diamonds with sharp edges (marquise, pear, heart, and square shapes) are more likely to pull threads or scratch her or others during sports.

You could also ask your future fiancée’s best friend to innocuously strike up a conversation on the topic of “gem stone shapes.” If her best friend has been attending acting classes, the level of innocuousness may even be believable enough without raising your girlfriend’s suspicions. However, you run the risk of full disclosure by her best friend (“Even though I swore to him I would never tell you….”) which will ruin any chance of surprising your girlfriend.

If you are into Freud or simply have an Oxford degree in psychoanalysis you can decide on the diamond shape using Saul Spero’s personality traits approach to picking the diamond shape. Saul, a New York diamond appraiser, apparently spent more than 25 years interviewing thousands of people to determine the correlation between personality and women’s preferences for diamond shapes. In his book Diamonds, Love, and Compatibility: So You Think You’ve Got a Gem (Behrman House Publishing, 1977), Spero talks about personality traits most likely to match the six basic diamond shapes:

Women’s Personality Traits and Diamond Shapes

Women’s Personality Traits	Diamond Shape
Home- and family-centered, dependable, relaxed, easy to get along with, and security conscious.		Round
Individualistic, creative, well-organized, dependable, and willing to take chances.		Oval
Sentimental, creative, feminine, sensitive, trusting, dramatic, and a dreamer.		Heart
Disciplined, organized, conservative, efficient, honest, and open.		Rectangle / Square
Conforming, considerate, adaptable, and home- and community-centered.		Pear
Extroverted, aggressive, experimental, exciting, innovative, and career-centered.		Marquise

One word of caution on this psychological approach though—most women like more than one shape. Saul Spero created his matching table based on profiles of women who liked just one and only one diamond shape. However, Saul’s methodology can still help you narrow down the choices to one or two shapes.

If you are simply in a rush to make a decision, can’t count on her best friend’s help, and not really into psychoanalysis, go with the round brilliant. Why? More than three-fourths (in other words more than 75%) of grooms give their loved ones a round brilliant solitaire as an engagement ring. Since round diamonds are the most popular shape sold, the odds are in your favor your lady will like a round diamond, too.

By Yana Kiselyova

DiamondPriceGuru.com is a web service that was created to make it as easy as possible for future grooms to buy a diamond ring for their loved ones. In this Step by Step User Guide we will describe how easy it is to use this service by following 4 simple steps.

DiamondPriceGuru.com is a web service that helps future grooms (well, actually anyone who is shopping for a diamond) save money by selecting a loose diamond from 400,000 stones carried by 11 online retailers. Why not buy a diamond ring right away, you ask? You can save a boat load of money if you buy a loose diamond separately from a ring setting and then have a retailer you selected mount the diamond on a ring for you—all retailers provide this service for free if you buy both the stone and the ring setting from them.

So, Step 0, I am imagining myself a groom-to-be who is passionately in love and has just stumbled upon DiamondPriceGuru.com web service. I am ready to start looking for a diamond that will be mounted on an engagement ring for my loved one. My budget is $2,000 and I want to find a round-shape diamond with the best parameters (cut, color, and clarity) for the price I can afford. Of course, you may have a different budget or a different objective altogether. This manual will help you use DiamondPriceGuru.com to the fullest extent.

Step 1: Select Diamond Parameters

To find a diamond for my brilliant girlfriend I need to pick its shape, set the limit on the price I am ready to pay, and select color and clarity of the stone from the Search page of DiamondPriceGuru.com.

 

Diamond shape

You can select the shape of the diamond by checking the boxes at the very top of the Search page. You can select one (if you know exactly what diamond shape your loved one would prefer), or you can select as many as you want or even all of them. See the picture below.

 

Emerald shape is “selected” and the cursor (little hand) is pointing to Round shape

 

If you think your beloved would prefer a round shape (also called round brilliant) you can select it and click on Emerald one more time to de-select from your search.

 

Round shape is now selected

 

By the way, you also do not have to try to point exactly to the “check box” to select the shape, you can click on any part of the shape box area.

 

Diamond price

I have $2,000 that I can afford to spend on a diamond (remember, though, there will be some expense on the ring setting as well, though typically not as high as the diamond stone itself). So, on the right-hand side (little box) of the Price slider I go ahead and type the number 2000. This automatically sets the slider to the number I typed in. Or I can simply drag the slider to the right until it points to 2000. This sets the maximum price for diamonds in my search results.

I leave the left-hand side of the slider at $200 (minimum price) to cast the net as broadly as possible, at least at the beginning.

 

Price is set in the range of $200 to $2000

 

Carat weight (or size) of diamond

I would like to see all sizes of diamonds priced at 2000 or lower. Therefore, I do not change anything on the Carat slider and leave it as is, which means search results will include all diamonds in the range of 0.1 carat to 6 carat.

Numbers in the “boxes” on the right and left of the slider are inserted there automatically.

 

The Carat weight (size) of the round brilliant is not limited

 

As demonstrated, prices and carat size of diamonds can be set either by moving the sliders or by putting the exact numbers into the boxes on the right and left of the sliders, whatever is more convenient for you.

However, diamond Cut, Color, and Clarity can only be selected by moving the sliders. Let’s do it.

 

Diamond cut

Typically, most people would not notice any difference between diamonds whose cut quality is certified as Ideal, Very Good, or even Good. Therefore for my search I select diamonds in the range of Ideal to Very Good. To learn more about the cut and what different grades of cut mean, click here.

 

The Cut is set for Ideal and Very Good

Thus, our search results will be limited to diamonds with the cut quality rated by GIA (Gemological Institute of America) or AGS (American Gemological Society) certification agencies as Ideal or Very Good.

 

Diamond color

I thought that all diamonds were colorless. It turns out that diamonds can have different colors—yellow, blue, green, pink, orange, and the rarest red. Web-service DiamondPriceGuru.com searches only for colorless (also known as white) or slightly yellowish diamonds in the range of color grades from D (colorless) to Z (yellowish).

By the way, I learned all this by clicking on a learn more link, which leads to the educational material about each of the four key parameters determining the diamond’s price: carat weight, cut, color, and clarity.

Back to the color, though. Let’s say, I am planning to mount the diamond on a platinum (or white gold) ring setting. A yellowish color diamond will look even more yellow on a white-metal ring. Therefore, I decided to set my search parameters on a Color slider to D and E, colors, that are perfectly white (typically it is impossible to distinguish yellow hue if a diamond is H color grade or above, but I decided to narrow down my search a bit more from the beginning).

 

Color is set in the range of E to D

 

Diamond clarity

Diamond clarity can be FL (Flawless), when stone has no blemishes, inclusions, chips, fractures, etc. Or the clarity can be rated as low as I3 (Imperfect), when a lot of blemishes, inclusions and other imperfections can be seen with a naked eye. And there is nine more grades in between as you can see on a Clarity slider below.

To make sure my happiness is not dependent on some spots and fractures in a stone I select the highest grades of clarity—from IF (internally flawless) to FL (flawless).

 

Clarity grade is set in the range of IF (internally flawless) to FL (flawless)

 

Ok, so we have decided on the parameters now.

Every time I changed one of the parameters, the number of diamonds matching my criteria was narrowed down and displayed in the box on the right side of the page. This function allows users to see how many diamonds will be included in the search results without having to go to the search results first. So, if you want to save time, deciding on a more narrow set of parameters will do the trick—you do not want to browse through 10s of thousands of diamonds before picking a stone to buy, do you?

DiamondPriceGuru.com tells me that it found 522 diamonds matching the selected criteria and priced at or under $2,000.

 

Found 522 diamonds

 

Step 2: Looking through search results

Now we are ready to do the search. Click on green “Go to search results” arrow to go to the page listing 522 diamonds that match your selected criteria.

 

Page with the first 50 found diamonds

 

To find the largest diamond in these results I need to jump straight to the last page of the search results (by clicking to pages at the bottom of the page). There is an easier way to do that, though—by sorting the results. All you need to do is click on the title box at the top of the table. If you want to sort the results by Carat weight, click on the word Carat—now all diamonds are sorted from largest by Carat weight to smallest.

Search results sorted by Carat weight in the descending order

If you click on the word Carat again, the table will get re-sorted in the opposite direction—from smallest stone to the largest.

In addition to Carat weight, you can also sort by Cut, Color, Clarity, as well as Price.

Step 3: Selecting diamonds (starred diamonds)

Ok, now I would like to pick 7 largest diamonds from my search results list for further comparison (remember, I have 522 diamonds in my results now, which makes it a bit overwhelming to pick from such a large number). DiamondPriceGuru.com offers a function that allows to select diamonds for the “Comparison Box” by clicking on stars next to the stones you want to compare side by side. So, I click on stars next to 7 diamonds that I am interested in and they automatically get included in my Comparison Box.

 

3 diamonds have already been selected (“starred”), and 1 more is in the process…

 

When a diamond is in the process of being selected—its star is “blinking” (or “hypnotically” whirl-winding). No worries, there is no hypnosis effect—just trying to attract attention.

So, out of 522 diamonds, matching my quality and price parameters, I have down-selected 7 stones for further comparison.

 

7 down-selected (“starred”) diamonds

 

By the way, you can de-star any of the starred diamonds by clicking on the purple color star one more time.

 

Step 4: Comparing selected diamonds

By clicking on the button “Go to starred diamonds” in the left-hand-side box, I get to the page showing only those 7 diamonds that I have starred.

 

Page with the 7 starred diamonds

 

Now I can export the data in the Microsoft Excel—.xls, or in the .csv format for easier comparison. I can send this file to my friends and family to get an opinion or simply print it out and take it with me to the jewelry store (if I decided I’d like to check it out how much more expensive those diamonds are in the brick-and-mortar place nearby).

 

Saving the starred diamonds data in the .xls format

 

I can also print the results out to show to a friend of mine to get his advice.

 

Page for printing

 

Let’s say, by looking at my list of 7 diamonds, I decided that I would like to narrow down my choice even more by eliminating any D-color diamonds (since they are more expensive), and also all Very Good cut diamonds—hey, my loved one deserves the best!

 

4 diamonds that will be eliminated from the Comparison Box (see the checked off boxes)

By clicking Remove I remove the selected 3 diamonds from my consideration. Now I have 4 diamonds in the Box.

 

4 diamonds remain in the Comparison Box

 

The remaining diamonds are identical in terms of color, clarity, cut, and certification. The only different is carat weight and price. I know, I am ready to spend up to $2,000, so I could pick the largest one—0.47 carats. But I am thinking the white gold ring setting will cost me some money too, so, might as well save some on a stone. So, I pick a 0.44 carat diamond for $1,791 from Adiamor.com.

I click on the name of this online retailer I am re-directed to the last page of the DiamondPriceGuru.com.

 

After that I am re-directed straight to the page showing the diamond I have selected. My credit card is ready, all I need is go ahead and make the purchase.

 

Adiamor.com page with the selected diamond

 

I have selected the diamond for less than $2,000, now I need to pick a ring setting from Adiamor, wait a few days and start thinking about how to make the moment of my proposal as unforgettable as I can. Amazingly, DiamondPriceGuru.com can help here too—click on our Proposals page to read how others have done it.

While the explanation of how regression analysis works takes a few pages, the reasons for using a regression analysis take just two sentences:

1. Learn which factors are most influential on diamonds’ prices.
2. Using a sample of diamond inventory from one vendor, predict the price of any particular diamond sold by that same vendor—and then compare it to prices of similar diamonds from other retailers.

So a regression analysis study can help you understand what you are buying and tell you whether a price is inline with competitors’ prices. Some retailers set their prices based on specific, quantifiable diamond attributes, such as the 4Cs (cut, clarity, color, and carat). Others pick prices based on what they think people will pay. So, not all pricing is logical, and a regression analysis can help steer you away from a jeweler who picks prices on a whim, as well as a retailer who follows a logical pricing pattern but charges 20-50% more than an equally reputable store.

If you are comfortable collecting data and running a regression analysis, that’s great, but not everyone is. For those, there’s DiamondPriceGuru.com, where the site will pull the information and diamond prices from retailers for you.

As an example of what regression analysis can reveal, we analyzed 6,000 diamonds from one reputable retailer (name withheld as we are just trying to prove the worth of regression analysis—not advertise for or against this particular company). The resulting formula looks like this:

Diamond Price = Intercept + (Carat x 4,020) + (Clarity x -122) + (Color x -90) + (Cut x -25)

To use this formula to predict this particular retailer’s diamond prices, just plug in parameters of a particular diamond. For example, price a diamond that is:

• Shape: Round (brilliant)
• Carat weight: 0.60 ct.
• Clarity: VS2
• Color: H
• Cut: Ideal

So, you would plug in $230 for Intercept (based on the actual regression analysis for this particular retailer), 0.6 for carat, 5 for clarity (see Regression Tables below, where 5 is equivalent to VS2 clarity grade), also 5 for color (color grade H is also equivalent to 5 in the Regression Tables), and finally, 1 for Ideal cut. Our formula for this retailer will then look as follows:

Diamond Price = 230 + (0.6 x 4,020) + (5 x -122) + (5 x -90) + (1 x -25) = $1,545

Figure 1: Regression Tables

Color	Grade
D	1
E	2
F	3
G	4
H	5
I	6
J	7
K	8
L	9
M	10
N	11
O	12
P	13
Q	14
R	15

Clarity	Grade
FL	n/a
IF	1
VVS1	2
VVS2	3
VS1	4
VS2	5
SI1	6
SI2	7
I1	8
I2	9
I3	10

Cut	Grade
Ideal	1
Very Good	2
Good	3
Fair	4
Poor	5

So, using the formula, the predicted total price is $1,545. The actual retailer’s price for this diamond is $1,516. Thus, in this case, the diamond is $29 (2%) less than the formula’s predicted price. With the assistance of regression analysis, you’ve learned this particular diamond’s price is inline with this retailer’s pricing plan.

By doing the math, you have also learned the key factors that weigh on the retailer’s pricing decision. Carat is by far this retailer’s largest concern. Carat accounts for more than $4,000 per carat or $2,400 for the 0.6-carat diamond used in our example.

The results of the regression analysis show the remaining Cs—clarity, color, and cut—are significantly less important to this retailer’s pricing. Each change in cut varies the price by $25; each color grade accounts for $90; and each clarity grade changes the price by $122. So, if you were debating downgrading the color or clarity by one grade, but were not certain which to drop, you’d see that a step down in clarity saves you $32 more than a step down in color (saving of $122 versus $90). Of course, price should not be your only consideration! To understand what the different grades in clarity, color, and cut mean, visit DiamondPriceGuru.com’s diamond basics.

With the knowledge gained from this one regression analysis, and after you did you own homework you can walk into that retailer’s store and compare the “predicted” price against actual price tags to see if any diamonds are “good deals” compared to the others in that store. Or you can construct a similar regression analysis formula for other retailers, based on their inventory, to compare predicted diamond prices from store to store. All you need is a calculator, more information on how to compute a regression analysis, and time. But you do not have to do any regression analyses—you can just visit DiamondPriceGuru.com, plug in the diamond’s parameters, let the Web site take care of the finding the diamonds and their prices, print out your findings, and compare that to the price tags at a jeweler’s store or buy right without going anywhere by clicking on a diamond you chose. That little effort could save you 20-50% on your diamond purchase price.

Rule #1: Buy a loose diamond separately from a ring setting and then have an online or brick-and-mortar jeweler create ring—you will save up to 30% on the total ring by doing that. Why? Retailers charge much lower profit margin on each individual “piece” because it is easier for shoppers to compare prices on diamonds and then on rings separately.

Rule #2: Learn about 4C to be able to shop around. To be able to compare two loose diamonds, you need to first understand what makes them the same or different. If you do not want to overpay thousands of dollars for a diamond ring, first learn about diamonds’ key features, also known as 4Cs: carat weight, cut, color, and clarity. Throw in the 5th C while you are at that—certification, which also impacts the price you will pay.

Rule #3: Shop around. The exact same diamond at two different name-brand stores will fetch different prices—sometimes a 20–30% difference. The bigger the stone, the bigger the difference. Add to your shopping list Internet retailers who don’t pay for storefronts, sales staff, security guards, mall cleaning fees, etc., and you could see a 30–50% savings. If you still decided to buy from a brick-and-mortar store, when you are choosing from various retailers and selecting from various diamonds—just plug in the information about the 4Cs of a diamond you are about to buy into the DiamondPriceGuru.com’s price finder and make certain you are being offered a fair and reasonable price.

Rule #4: Buyer beware. Know the tricks deceptive retailers have used to fleece customers. Read more about the top 20 diamond scams here.

Rule #5: Certify it. Ask to see the diamond’s certification papers if you buy from a brick-and-mortar store or make sure you get a GIA or AGS certified diamond when buying from an online retailer. When you get the certificate—verify that the information is what you expected.

In this engagement ring buying guide, we will do our best to help you make the right purchase decision and save money when buying a diamond ring, a loose diamond, or other diamond jewelry.

What is important to you as a diamond buyer: shape, size, quality, elegance, store’s name, setting design? All of these impact a diamond’s price, so it’s only by learning about these attributes that you will decide exactly what you want in a diamond.

And once you know exactly what you want, DiamondPriceGuru.com will troll diamond sellers’ databases to find diamonds that match the one you described. You will see the best prices available for your exact diamond.

When thinking of buying a diamond ring (or any diamond jewelry for that matter) you need to decide first on how much money you can afford to spend on this important purchase and then what features are the most important—important for you, but more so for her.

If you are shopping for an engagement ring, an oft-repeated hint among future grooms-to-be is that an appropriate ring should cost one to two months’ salary. Each gentleman needs to decide for himself what he can afford or would feel comfortable spending.

As far as the diamond features are concerned, fortunately, the choices are not that huge—it is not like buying a house.

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